Kuehne + Nagel International AG - 1st Quarter Results 2006

The globally operating Kuehne + Nagel Group delivered strong financial results for the first quarter of 2006. With turnover up 41.7 per cent to CHF 4,290.7 million and the operational result (EBITDA) increased by 68.7 per cent to CHF 199.1 million, the past years’ strong growth was exceeded. Net earnings improved by 46.2 per cent to CHF 101.6 million compared with the previous year.

In CHF million

2004

1st Quarter

2005

2006

Kuehne + Nagel Group

Turnover

2,586.7

3,027.3

4,290.7

Gross profit

553.0

626.6

1,231.4

Operational result (EBITDA)

105.5

118.0

199.1

EBT

71.5

97.9

141.9

Net earnings

48.0

69.5

101.6

With a 20.1 per cent volume increase in seafreight in the quarter, Kuehne + Nagel again grew more than twice the market rate. The 44.6 per cent EBITDA improvement illustrates the company’s high operational efficiency and validates its strategy of investing in IT-based solutions, which add value to customers’ supply chains.

In airfreight, while the overall market only grew approximately 3 per cent, Kuehne + Nagel gained market shares and increased tonnage by 7.4 per cent. Last year’s strong first quarter operational result was exceeded by 8.8 per cent despite significant costs associated with the global roll-out of new products.

European overland activities performed well. Increased business volume and an improved operational result highlight the good progress being made in the integration of the acquired companies. The enhanced overland network is creating excellent perspectives for future development.

The acquisition of ACR Logistics has elevated Kuehne + Nagel into a new league in contract logistics. Turnover alone has nearly tripled compared with the previous year. Productivity increases as well as ongoing standardisation and centralisation of IT systems contributed to the positive development of margins in this business.

Following the expansion of contract logistics activities and European overland operations as well as the respective acquisitions, real estate has meanwhile become so extensive that segment reporting as of the first half year ending June 30, 2006, will include this separately.

Klaus Herms, CEO of Kuehne + Nagel International AG, summarises his evaluation of the first quarter 2006 as follows, “The results, which have exceeded our expectations, are a great confirmation of the effective implementation of our strategy. We remain confident regarding the future performance of our business and the development of earnings.”